Welcome!

Mobile IoT Authors: James Carlini, Mauro Carniel, Rostyslav Demush, Pat Romanski, Elizabeth White

News Feed Item

O-Net Communications Achieved Business Turnaround in 2H 2013



- Revenue Surged 57.8% to HK$404.9 million Compared to 1H2013 and Net Profit at HK$36.2 million
- FY2013 Full Year Revenue at HK$661.5 million
- Continues to Gain Market Share in the optical component market
- Diversified to Automation Business for Sustainable Growth


Hong Kong, Mar 20, 2014 - (ACN Newswire) - O-Net Communications (Group) Limited ("O-Net Communications" or the "Group") (stock code: 877), a leading supplier of passive optical networking subcomponents, components, modules and subsystems used in high-speed telecommunications and data communications networking systems, achieved profitable results for the year ended 31 December 2013 ("FY2013").

The Group achieved business turnaround in the second half of 2013 ("2H2013") as the global telecommunications market gradually recovered. Revenue of 2H2013 was HK$404.9 million, representing a 57.8% rise compared to the first half of 2013. The growth was mainly attributable to the Group's efforts in strengthening leadership in the optical component market through enhanced coverage of key customers, as well as revenue contribution from the new automation business. 2H2013 gross profit margin rose to 33.5% (1H2013: 29.6%). The Group also returned to profitability during 2H2013 with a net profit of HK$36.2 million, thus it was able to achieve a profitable annual results.

For FY2013, the Group's revenue totaled HK$661.5 million (2012: HK$727.4 million), with gross profit margin at 32.0% (2012: 41.3%) as the Group adopted a competitive pricing strategy for its products. Profit attributable to equity holders was HK$13.4 million, while non-GAAP net profit was HK$30.2 million.

The Group's cash position remained strong with more than HK$456.9 million in cash as at 31 December 2013, as it maintained a strong operating cash inflow of HK$37.3 million during FY2013.

Mr Austin Na, Co-Chairman and CEO of O-Net Communications, said, "We are glad to see that O-Net has grown stronger during the year against the volatile market conditions. The group continued to enhance R&D capability for a strong product pipeline including next-generation active products for telecoms and data-communications markets, and our market share continued to grow. At the same time, we have tapped into automation business which has achieved initial success and generated revenue contribution. We are in a better position to capture market opportunities arising."

Business Review
Strengthened R&D Capability for Next Generation Optical Networking Products. The Group continued to invest in R&D to ensure sustainable growth of its core optical networking business. As a result of enhanced R&D efforts, new technologies were developed and a series of high-growth next-generation active products for telecommunications and data-communications markets are under development which expanded the Group's portfolio from traditional optical component market to cover access and datacom market by subsystems, active optical components and modules. The Group has also partnered with renowned overseas companies to facilitate the development such as partnered with VIS from Germany to develop proprietary high speed optical interconnects, and also cooperated with a Canadian company, ArtIC Photonics, Inc., to develop proprietary photonic integrated circuit chips.

Automated New Plant Ensures Higher Efficiency and Capacity. The Group has established a new manufacturing facility in Pingshan, Shenzhen with an area of 100,000m2. The highly automated new plant not only enhanced the operational efficiency, but also provided more capacity to support new business development such as automation.

Seize the Huge Opportunities in Automation Industry. Commenced in 2012, the automation business has started to contribute revenue of HK$7.5 million in FY2013 with a satisfactory gross profit margin of 39.5%. The Group has started to deliver customized high value-added automation equipment to electronic cigarette, mobile phone and home appliance manufacturers. In addition, the automation business division has developed automation equipment for producing heating coils and began to supply the heating coils produced by these equipment to the electronic cigarette makers in China from the last quarter of 2013. As a results, the Group has quickly established itself as a leading supplier of automation solutions for the electronic cigarette manufacturers in one-year's time.

Prospects
Optical Networking Business on Fast Track Riding on Bright Industry Outlook. The optical components market is expected to reach its historic peak at US$10.5 billion in 2018. This is driven by the continued strong demand for 40G and 100G components and modules to support increasing data traffic and new cloud-based service opportunities. Strong market outlook favors the growth of O-Net as a key industry player. Leveraging its core strengths in R&D capability and world-class talents, the Group will start to deliver a series of high-growth next-generation active products for telecom and data-com markets within 2014 to further strengthen its market leadership and boost margins.

Diversification Fuels Business Growth. The Group is positive that the automation business will continue to grow as the domestic manufacturing industries are in transition to cope with rising labour costs and recruitment difficulties. It generated great demand for automation equipment delivering high value. The Group will continue to dedicate resources on identified industries, as well as to develop standard products for different automated production systems with intelligence camera in the pipeline. In addition, apart from supplying heating coils, the Group also aims to become a leading supplier of components and automation solutions in the electronic-cigarette industry as the potential size of the electronic cigarettes market is anticipated to reach more than 10% of the total tobacco industry by 2020, which shall help drive the Group's business growth in the near future.

At the same time, following the set up a joint venture with OPDI Technologies A/S, the Group will explore opportunities in the fast growing touch panel business.The first-generation sample touch panel is expected to be completed by 2014 and the joint venture is anticipated to generate income from overseas customers this year. Together with other potential areas, the Group is confident that new businesses will help to broaden income stream and improve profitability in the near future as well as in the longer term.

Mr Na concluded, "Looking forward, we will continue to bolster our efforts to develop innovative products with an aim to enhance O-Net's competitiveness in the optical networking industry. Meanwhile, with the initial success in the automation business, we will dedicate more resources in identified high-growth market segments, targeting at a well diversified revenue structure. Through innovation and diversification, the Group's business will achieve sustainable and balanced growth for the best interest of our shareholders."

About O-Net Communications (Group) Limited

O-Net Communications (Group) Limited, with headquarters in Shenzhen, was listed on the Stock Exchange of Hong Kong Limited on 29 April 2010. It is a leading supplier of passive optical networking subcomponents, components, modules and subsystems used in high-speed telecommunications and data communications network systems. To broaden the product offerings through innovation and diversification, the Group started the research and development ("R&D") of certain active optical networking products used in the next generation telecommunication and data-communication systems. The Group has a high quality client base including Alcatel-Lucent, Huawei as well as contract manufacturers to Ciena and Infinera. Building on its unique vertically integrated business model, the Group designs, manufactures and delivers cost-competitive customised products and solutions based upon individual customers' product needs and specifications. Apart from strengthening the core optical networking businesses, the Group adopted a new strategy "Diversity for Growth" and identified certain new businesses included automation and touch panel with an aim to become a leading high-tech company.

Source: O-Net Communications (Group) Limited

Contact:
Strategic Financial Relations Limited
Heidi So   +852 2864 4826   [email protected] 
Maggie Au   +852 2864 4815   [email protected]
Agnes Luo   +852 2864 4851   [email protected]
Fax:  +852 2527 1196 / 2804 2789




Copyright 2014 ACN Newswire. All rights reserved.

More Stories By ACN Newswire

Copyright 2008 ACN Newswire. All rights reserved. Republication or redistribution of ACN Newswire content is expressly prohibited without the prior written consent of ACN Newswire. ACN Newswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
BnkToTheFuture.com is the largest online investment platform for investing in FinTech, Bitcoin and Blockchain companies. We believe the future of finance looks very different from the past and we aim to invest and provide trading opportunities for qualifying investors that want to build a portfolio in the sector in compliance with international financial regulations.
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
We are given a desktop platform with Java 8 or Java 9 installed and seek to find a way to deploy high-performance Java applications that use Java 3D and/or Jogl without having to run an installer. We are subject to the constraint that the applications be signed and deployed so that they can be run in a trusted environment (i.e., outside of the sandbox). Further, we seek to do this in a way that does not depend on bundling a JRE with our applications, as this makes downloads and installations rat...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
Digital Transformation (DX) is not a "one-size-fits all" strategy. Each organization needs to develop its own unique, long-term DX plan. It must do so by realizing that we now live in a data-driven age, and that technologies such as Cloud Computing, Big Data, the IoT, Cognitive Computing, and Blockchain are only tools. In her general session at 21st Cloud Expo, Rebecca Wanta explained how the strategy must focus on DX and include a commitment from top management to create great IT jobs, monitor ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
The IoT Will Grow: In what might be the most obvious prediction of the decade, the IoT will continue to expand next year, with more and more devices coming online every single day. What isn’t so obvious about this prediction: where that growth will occur. The retail, healthcare, and industrial/supply chain industries will likely see the greatest growth. Forrester Research has predicted the IoT will become “the backbone” of customer value as it continues to grow. It is no surprise that retail is ...